Company briefs - 2004-03-11

Russia's Lukoil began development drilling for oil on the Kravcovskoye D-6 deposit in the Baltic Sea shelf last week, just 22 kilometers from the Curonian Spit.

Commercial drilling operations have been scheduled for this summer, with a target of 70,000 tons of crude to be extracted by the end of 2004, all of which will be exported. The platform's annual capacity of 600,000 tons could be reached by 2007. A total of 27 oil wells will be drilled during the deposit's tentative exploitation period of 30 - 35 years. Notably, it is the first sea-based oilrig designed by Russia, Lukoil reported.

Cili, operator of Lithuania's largest chain of pizzerias, reported sales of 50 million litas (14.5 million euros) in Lithuania and Latvia in 2003, a rise of 35.1 percent year-on-year. Lithuanian sales (12 pizzerias) soared 33 percent, while those in Latvia (five pizzerias) jumped 50 percent to 6 million litas. The company said it planned to open five new restaurants in the two countries this year, and that turnover would increase to 81 million litas. The owners are also considering franchising operations. Last year Cili pizza was voted the best pizza in the Baltics by the readers of The Baltic Times.

Liepajas Metalurgs announced it was planning to build a plant for turning steel and cast iron waste into road construction material. The company has received the necessary permit and said that up to 150,000 tons of waste could be processed. Currently the factory is producing some 540,000 tons of martin steel and 600,000 tons of rolled steel annually, or near maximum capacity.

The Tallink Group said it would create 700 new jobs this year with the launching of its newest passenger ferry, the Victoria I, in April, as well as a new hotel this spring and then two new fast ferries in the summer. The company is also replacing the Kapella cargo ship with a new vessel, Regal Star. The Tallink Group has reportedly invested around 7 billion kroons (447 million euros) over the last five years.

Baltic retail leader VP Market said it expected sales in Latvia to grow nearly 40 percent this year to reach 200 million lats (300 million euros). Last year sales were 144 million lats, up 50 percent from 2002. To achieve its targets for 2004, the Lithuania-based retailer is opening 18 new T-Market stores and two Maxima supermarkets in Latvia. VP Market also plans to open 15 new T-Market stores in Estonia.

Estonian Air announced that it carried 33,428 passengers in February, up 47 percent year-on-year. Over the two-month period the airline also handled 47 percent more passengers than over the analogous period last year. Average flight occupancy was 52 percent, with the Tallinn-London flight scoring a 82 percent occupancy rate. The airline expects to serve 600,000 passengers this year, compared with 400,000 in 2003. In May it will start flying to Munich five times per week.